Cost and collaboration barriers obstructing UK supply chain CO2 reductions, says Wincanton

The survey, carried out by supply chain specialist Wincanton, looked at how organisations are reducing CO2 emissions in commercial transportation, in light of impending net-zero deadlines. 

The survey results are revealed in Wincanton’s new report, Share the Road to Sustainability, published today (17 September).

It found that businesses aren’t making the progress they want, with over half (54%) believing they will struggle to meet their net-zero goals.

The research revealed that four in five (80%) believe that reducing CO2 emissions in their logistics fleet means an increase in costs. As a result of these perceived cost pressures, two thirds (66%) have had to deprioritise hitting these targets.

However, 37% of respondents said they had seen cost reductions from tackling their CO2 emissions.

In addition only 25% believe alternative fuel vehicles will be affordable in four to six years. 

Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but don’t know how, and 42% of organisations admit they do not know how to further optimise their fleet. 

As a result, 55% state that they are not currently reducing emissions in their logistics fleet.

And a significant majority (84%) expect government to play more of a role to support CO2 reduction. 

Paul Durkin, Wincanton chief customer and innovation officer, said: “Sustainability remains a high priority for UK businesses. But it’s clear they aren’t making enough headway when it comes to reducing emissions in their supply chain operations.

“This is the result of the lack of viability and affordability of alternative fuel vehicles and ongoing cost pressures during a challenging economic period. We can see that a gap is emerging between their priorities and the action needed to reach net-zero.” 

The report to the survey also takes a closer look at opportunities that exist through collaboration and digital optimisation to help optimise commercial fleets and reduce costs. It also considers ways of establishing a community of providers and considers how the skills gap in the sector can be addressed and looks at the benefits of outsourcing versus insourcing as a way of cutting emissions.

The survey found that better collaboration can help improve sustainable performance. Two-thirds (65%) of survey respondents agree collaboration is key to the future success of the logistics industry.

However, collaboration needs to be made easier for all involved, as businesses report they’re nervous about a difficulty finding partners to collaborate with (28%) and the lack of internal resources to manage collaboration projects (26%). 

Helen Flanagan, EyeQ product director at Wincanton, added: “More efficient use of existing capacity is key. Last year the Government reported that almost a third of the total vehicle kilometres travelled by HGVs in the UK were empty.

“Put simply, too much fresh air is being moved around the UK, contributing to high emissions and high costs for businesses. Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.”

Wincanton’s EyeQ uses technology to help cut emissions. The end-to-end solution takes orders from customers, builds efficient loads, optimises the schedules, and decides whether the load is insourced or subcontracted. It also interfaces with the end customers on delivery time and and manages proof of delivery.

Wincanton’s new report, Share the Road to Sustainability, can be found in full here.